Head To Head: Netflix vs. Redbox

The Movie Industry Overview

Rental services are the cheaper way of watching movies:

Buy DVD -- $10.00 per DVD
Go to the Movies --- $7.95 per person
Rent a DVD ------ $1 per DVD

Most Americans have the technology to watch movies at home:

Almost 90% of U.S. homes have a DVD or Blu-Ray player.

Netflix revenue

2008 -- $1.36 Billion
2009 -- $1.67 Billion
2010(Q1) -- $493.7 million

Rental Market in 2009

Subscription Service - 45%
Kiosks - 19%
Rental Stores - 36.0%

Redbox Revenue

2008 -- $388.5 million
2009 -- $773.5 million
2010(Q1) -- $263 million

NETFLIX vs. redbox

Netflix pros and cons

Price: $8.99 per month
1 DVD out at a time

Selection: 1,00,000 titles

Rental System: DVD-by-mail
The delivery usually takes 1 business day

Movie Stream
Unlimited instant movies

No additional fees
Even if you keep the DVD for an extra day.

Netflix advantage: Unlimited web viewing

61% of Netflix customers have streamed at least 15 minutes of a movie or TV episode
The movies are streamed via Internet and Consoles like Wii.

Redbox pros and cons

Price: $30 per month
if you rent and return 1 DVD everyday for a month

Selection: 200 titles

Rental System: Kiosks
The customer can rent DVD's anytime

There's no movie stream
Redbox will probably launch a web service

Late fee
$1 per day

Redbox advantage: Convenience

An average of 1 Redbox kiosk is opened each hour in the United States.
Redbox operates more than 24,000 vending machines

Head To Head: Netflix vs. Redbox

shared by kevin on Mar 21, 2011 in Entertainment


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1 comment

Breaks down the pros and cons of both Redbox and Netflix, and shows how successful each has been.
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Category: Entertainment


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